Over the years, we have analysed numerous condominiums in Singapore that were launched for sale under tough market conditions. In the case of Summerdale, a 432-unit executive condo – now privatised – on Boon Lay Drive, it would be an understatement to describe its initial entry amid tough market conditions.
This development in District 22 was launched for sale 1997, shortly after the introduction of the EC scheme and when buyer sentiment in the private housing market here was rocked by the Asian Financial Crisis.
Back then, developers and buyers were still adapting to the EC scheme, and the first few EC developments hit the market a year or so after it was announced in 1995. Buyers and agents also had to do a lot of ground work to fully understand a new development; there were no YouTube tours, property portals, or Stacked writers publishing useful price comparisons.
So it’s hard to understate how much of a leap of faith the initial buyers of Summerdale faced at the time. In essence, they were being asked to pay for a home that was considerably more than the price of an HDB flat, for something that was “not quite” a condo.
Next, as with most of the initial ECs to hit the market, Summerdale arrived in the shadow of the Asian Financial Crisis (AFC). This was a double-blow for everyone in the property market at the time.
Sentiment was less than exuberant following the introduction of government property cooling measures in 1996, so the AFC struck at a time when the property market was moderating. As a result, some buyers were waiting on the sideline for property prices to fall further, which dampened buying activity.
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